No more bailouts?

posted by Curt, on October 15, 2007 08:15 pm

Bernake today warned investors that the Federal Reserve might not bail them out again with another interest rate cut at the end of the month. He said (very truthfully) that it's not the Fed's job to protect investors and that its questionable as to whether the Fed could even do it if they wanted to. While it's good to hear those things coming from the Federal Reserve, I won't be convinced until I see the Fed ignore the pressure from Wall Street. Bernake said the same things last month prior to cutting interest rates. We'll see whether he's serious this time. I hope so. I, for one, have seen enough of the easy money economy. It makes me nervous to think that money was given out so easily, and it makes me even more nervous when people act like we can erase a few years of bad economic decisions with a couple of cuts in the relevant interest rates. I'm no economist, but I understand the principle of the law of the harvest well enough, and, if people don't start behaving responsibly with their money, the consequences will come.

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